UAE is set to post GDP growth of 4% in 2024, with a real GDP growth per capita hitting $52,407. While, the gross domestic product (GDP) of United Arab Emirates grown by 7.9% in 2022. It was driven by innovative economic initiatives related to the non-oil sectors and activities.
The preliminary data from the Federal Competitiveness and Statistics Centre (FCSC) is out. It shows that the UAE’s GDP hit the $441.1 billion (Dhs1.62 trillion) mark at constant prices in 2022. Whereas, at current prices it reached Dhs1.86 trillion, up 22.1% from Dhs337 billion in 2021.
UAE is working to build an innovative economic model that serves its future vision. Moreover, it is adopting flexible economic policies that rely on speed and accuracy in responding to the global changes. Adopting stimulating economic strategies and forward-looking financial plans for starting businesses that diversify industry are a key here.
Contribution of Dubai in GDP expansion of UAE
Dubai has grown to become a global business center over the last four decades. The city is establishing its image and reputation as a vibrant and a diverse investment destination. It offers quality hospitality, first-class infrastructure, and a range of attractions that justify the term “Dubai business hub”.
Likewise, the service sector contributes considerably to Dubai’s GDP, and is one of the fastest-growing industries. Dubai offers business opportunities to enterprises of all sizes, in other words, it has a hospitable business climate. The city has recently become home to aspiring multinational companies and entrepreneurial activity.
Factors behind the transformation of the UAE
The rise of UAE as a leading business destination is due to several factors. For example, strategic location, modern infrastructure, business-friendly policies, skillful workforce, and proactive government initiatives. Dubai has become a center of trade and commerce for the Middle East and Northern Africa (MENA) region.
Dubai is revolutionizing into a hyper-modern city with world-class malls, chic architecture, unique attractions, and its artificial island. Growth in financial and business services, trade logistics, and tourism development is playing a significant role in Dubai’s success. Thus, all this is transforming Dubai into a global hub over the past few decades.
The magic of Emiratisation
The economy of the UAE for the past several decades is experiencing a massive uplift. Top-of-the-line infrastructure, 100% percent foreign ownership, and minimal taxation are some of the incentives. This all has led to a massive influx of budding entrepreneurs wishing to set up a business in Dubai.
This boom in the financial standing of the UAE is due to the visionary leadership. Therefore, they made futuristic policies that lure foreign investors to invest in the region. Experts label this industrialization and business transformation of the UAE as the “Emiratisation”. In 2018, the phenomena of “Emiratisation” grown to an astounding 200%.
Conclusion
The geographic position, top-level amenities, and pro-business government initiatives make Dubai a top-ranking city. Dubai is turning into an epitome of trade and growth in the Gulf region. Consequently, 2024 is an year of limitless possibilities and an array of new opportunities for Dubai and the UAE.
Foreign entrepreneurs can cash on the economic stability of the UAE. Dubai has the potential to empower future business leaders in company setups. For this purpose, business consultants like KWS Middle East are here to hold your back.
